This week we take a look at some big named companies that generate huge ‘free’ cash flows compared to their market cap, using the price to free cash flow ratio (P/FCF).
Price to free cash flow (P/FCF) is an valuation metric that compares a company’s per-share market price to its free cash flow (FCF). This metric is very similar to the valuation metric of price to cash flow but is considered a more exact measure because it uses free cash flow, which subtracts capital expenditures (CAPEX) from a company’s total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.
Here’s 10 big named companies with huge free cash flows compared to their market cap:
1. JPMorgan Chase & Co (JPM): Market Cap $333.36B, Free Cash Flow $80.04B – P/FCF 4.32
2. Pfizer Inc (PFE): Market Cap $293.45B, Free Cash Flow $31.78B – P/FCF 9.43
3. Exxon Mobil Corp (XOM): Market Cap $377.63B, Free Cash Flow $40.07B – P/FCF 9.55
4. Meta Platforms Inc (META): Market Cap $430.71B, Free Cash Flow $39.81B – P/FCF 11.28
5. Chevron Corp (CVX): Market Cap $289.44B, Free Cash Flow $24.78B – P/FCF 11.46
6. AbbVie Inc (ABBV): Market Cap $266.60, Free Cash Flow $22.05B – P/FCF 12.16
7. Broadcom Inc (AVGO): Market Cap $206.39B, Free Cash Flow $14.42B – P/FCF 15.17
8. Verizon Communications Inc (VZ): Market Cap $188.65B, Free Cash Flow $10.11B – P/FCF 18.56
9. Alphabet Inc (GOOGL): Market Cap $1.383T, Free Cash Flow $68.98B – P/FCF 20.49
10. Apple Inc (AAPL): Market Cap $2.474T, Free Cash Flow $105.79B – P/FCF 23.76
Here’s what they look like in one chart:
JPM Price to Free Cash Flow data by YCharts
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